Clearwater Paper looks to tighten its belt

Clearwater Paper is tightening its belt after the continuing operations of the paperboard company had a net loss of $74 million in 2024.

That figure compares with a net income of $49 million in 2023 for those operations, according to a news release issued Thursday.

The paperboard industry is facing challenging conditions with supply exceeding demand, but Clearwater Paper is optimistic about the potential of the sector, said Clearwater Paper President and CEO Arsen Kitch, who made remarks Thursday in a news release and a conference call for stock market analysts.

The company, which has a Lewiston mill with about 680 employees, manufactures paperboard for packaging and paper dishware.

In January, Clearwater Paper announced it was eliminating 10% of its positions across the company. Among those were 23 filled positions in Lewiston and another roughly 50 jobs that were vacant. Company-wide, Clearwater Paper trimmed 250 positions, with 135 being filled jobs, according to the company.

“We’re also targeting spend reductions in other areas, including contractors, professional services and maintenance,” Kitch said.

That approach is anticipated to generate $30 million to $40 million in cost savings in 2025, he said.

Even though paperboard is in a “down cycle,” Clearwater Paper is investing in its assets to keep them competitive in the long run, Kitch said.

“We recently signed a major, long-term supply agreement with a customer that should help us fill out our open capacity and capture volume synergies from the Augusta acquisition,” he said.

The remarks of Clearwater Paper’s CEO followed a year where the company, which spun off from Potlatch in 2008, took a new direction.

Clearwater Paper purchased a mill in Augusta, Ga., an acquisition that increased its paperboard capacity by nearly 75%, Kitch said.

In November, Clearwater Paper completed the sale of its tissue operations that make toilet paper, paper towels, paper napkins and facial tissue to Sofidel America Corp. for $1.06 billion. The acquisition included operations in Lewiston; Las Vegas; Shelby, N.C.; and Elwood, Ill., near Chicago.

“These two deals transform Clearwater (Paper) and position our company for future growth in paperboard,” Kitch said.

Including income from the tissue operations, Clearwater Paper had a net income of $196 million in 2024, compared with a net income of $108 million for 2023, according to Thursday’s news release.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.